Friday 8 July 2011 06.21 EDT
First published on Friday 8 July 2011 06.21 EDT

A £600 million development which will regenerate a large section of Leeds city centre has been granted outline planning permission by city councillors.

The planned new public square at the bottom of Eastgate

The 1,000,000 sq ft retail-led Eastgate Quarters scheme will create 4,000 retail and leisure jobs and will transform a site north-east of Leeds city centre, most of which has been empty for the past four decades.

The plans are scaled down from proposals which stalled two years ago due to the economic downturn - but will include flagship John Lewis and Marks and Spencer stores, alongside 130 new retail and restaurants units, bars, offices and a gym.

The scheme includes a new civic square and the pedestrianisation of all the streets within Eastgate Quarters. The £600 million scheme also includes the restoration of historic buildings, a two-level shopping arcade which will complement Leeds' rich architectural heritage, refurbished offices and the largest shopper car park in the city with around 2,500 spaces.

A low-carbon energy centre for the scheme has also been approved by councillors in the Civic Hall which will provide heating, cooling and electricity required by the development, with the opportunity to also support neighbouring homes and businesses.

Looking down a pedestrianised Eastgate towards the planned new public square

"I am delighted with the positive decision from Leeds City Council. Hammerson has been working hard over the past few years to develop the best possible scheme to put Leeds firmly on the retail map.

"The scheme will create thousands of jobs, boosting the local economy, and will strengthen Leeds' status as a leading European city destination."

The decision was welcomed by councillor Richard Lewis, Leeds council's executive board member responsible for city development. He said:

"We welcome the city centre plans panel's decision: the Eastgate Quarters development and the low carbon energy centre are major schemes which are vital to Leeds' future economic growth.

"Eastgate Quarters will ensure the city's retail sector can continue to compete nationally and internationally and bring thousands of jobs to the city. It is a rare opportunity to develop a part of the city centre which is in need of investment and regeneration.

"The low carbon energy centre is particularly exciting project which offers huge potential for the city. We are looking forward to working closely with Hammerson to bring these exciting schemes to fruition."

The approval is the first step which could see the development open in 2015. Work restarted on the nearby £300 million Trinity Leeds retail scheme last year, which will create 1,000 construction jobs and 3,000 retail jobs. To the north west of the city centre work is also under way to build the £55 million 13,500-capacity Leeds Arena project.

"We welcome the news that Hammerson has been granted planning permission for Eastgate Quarters, which will bring John Lewis one step closer to having a retail presence in Leeds. We firmly believe the development will successfully regenerate the area and lift the city to a new level in the hierarchy of UK shopping destinations."